O'Dwyer won't admit govt 'wrong' on banks

Liberal MP Kelly O'Dwyer has refused to accept the federal government should have agreed earlier to a probe into the banks, despite saying she's appalled by revelations at the royal commission.

Deflecting the question eight times, the financial services minister instead talked up the coalition's efforts to boost the standards for financial advisors and increase the penalties for misconduct.

"We have done it, we have established (the commission), not only with very broad terms of reference rather than the narrow focus that some might have actually had instead, but we have also put in place a very good royal commissioner," she told ABC TV on Sunday.

For 18 months the federal government opposed Bill Shorten's proposal to investigate the banks.

Ms O'Dwyer described the idea of a royal commission as a talkfest five months ago, claiming it would "kick the can down the road" for a number of years.

Now, she admits to be being appalled by a number of the issues that have been aired.

"The government has been very alive to the problems in the financial services industry and we have been acting from the get-go," she said.